How the government stole South Africa dry

Criminals were able to loot South Africa’s state-owned enterprises because there were crooks at these companies and inside parliament where oversight was supposed to occur.

This was revealed in a discussion about state capture, during which economist Dawie Roodt and investigative journalist Pieter du Toit shared their views.

During Jacob Zuma’s presidency, state-owned enterprises were looted, and billions were stolen through corrupt schemes.

The wealthy Gupta family played a prominent role in state capture, which included interference in cabinet positions.

The late former Finance Minister Pravin Gordhan estimated the cost of state capture at around R250 billion, but other estimates were much higher.

It raises the question of how corruption at such a scale was possible and how the government allowed state-owned enterprises to be looted.

Roodt explained that it was possible because everyone was in on it, including the leaders at these companies, the politicians, and the police.

Du Toit provided the example of Eskom, which was at the centre of corruption and looting and racked up tremendous debt because of malfeasance.

The government owns Eskom and reports to parliament, where oversight happens. This organisation should stop corruption at SOEs.

“Eskom reports to parliament. Its management and board appear before parliament and present its balance sheet and financial reports,” Du Toit explained.

However, like Eskom, parliament was also captured. “You had crooks on both sides of the fence, so oversight did not occur,” Du Toit explained.

“When Eskom started to go south, you had crooks and cadres in parliament. They got away with it because they were all in on it.”

He explained that South Africa has an excellent Constitution. However, it does not matter when the whole system collapses.

Du Toit highlighted that many of the people at the centre of state capture are now members of parliament. “There is a problem with the system,” he said.

Roodt added that the term ‘state capture’ has become an excuse for what happened before, even to the former ruling party.

“They say, ‘It was not us. It was something far away from us. Let’s be honest about this: it was caused by the former ruling party,” he said.